Evident, a leading insurance verification service provider, observed that 75% of third-party vendors fail to comply with enterprise insurance requirements despite being contractually obligated to do so.

Managing cyber-risk follows the same basic process and principles as managing any other risk; however, the best risk management plans are only as strong as their weakest link. When it comes to cybersecurity, that weak link is often a business' third-party vendor.

There is a foundational disconnect between the corporate departments that specify the insurance requirements for vendors and partners, and those responsible for assuring compliance and verification. By reducing the verification process to an administrative task, its significance is downplayed to a point where it can be overlooked or ignored.

Insurance verification takes an extraordinary amount of time and effort — but it is vital to a business’s long-term health. It is too often treated as a purely administrative task and is rarely seen as mission-critical.